Merdeka Battery Materials Reports Surge in Nickel Production for First Half of 2024

MBMA Doubles Nickel Output Amid Strategic Expansions

Merdeka Battery Materials (MBMA), a prominent nickel producer in Indonesia, has announced a significant increase in its nickel production for the first half of 2024. The company has more than doubled its output compared to the same period last year, driven by strategic expansions and infrastructure improvements at its Sulawesi Cahaya Mineral (SCM) mine, positioning itself to meet rising global demand.

Production Breakdown and Future Outlook

From January to June 2024, MBMA produced 3.93 million wet metric tonnes (wmt) of nickel materials, including 3 million wmt of limonite ore and 0.93 million wmt of saprolite ore. This increase is attributed to robust demand for limonite, which is expected to grow further in 2025. To accommodate this demand, MBMA has increased its engagement with mining contractors, enhancing its mining activities.

SCM Mine’s Crucial Role in Operations

The SCM mine plays a vital role in MBMA’s operations, providing essential materials for both nickel pig iron (NPI) production and high-pressure acid leaching plants. Additionally, MBMA plans to begin supplying limonite ore to new partners, PT ESG New Energy Material and PT Meiming New Energy Material, as their new plants become operational in mid-2025.

Record Production Levels Highlight Company Growth

During the first half of 2024, MBMA’s rotary kiln electric furnaces (RKEF) produced 42,782 tonnes of nickel in NPI, marking a twofold increase from the previous year. Matte production also soared, exceeding fivefold to reach 25,443 tonnes, reflecting MBMA’s expanding production capabilities and strategic investments.

Adjustments to Production Targets

Looking forward, MBMA has set its matte production guidance at 50,000-55,000 tonnes for 2024, while adjusting its NPI target downward to 80,000-85,000 tonnes. This revision is in response to planned maintenance work at one of its smelters, which is anticipated to temporarily affect production levels.